The Audit and Standards Advisory Committee of Brent Council met on Wednesday 12 June 2024 to review the council's counter fraud efforts, internal audit performance, and financial statements. Key decisions included noting the Annual Counter Fraud Report, approving the revised Internal Audit Charter, and recommending the draft Annual Governance Statement for approval.

Standards Report

The committee received an update on gifts and hospitality registered by members in the fourth quarter of 2023-24, noting that no limit had been set for the value of gifts or hospitality that individual members could receive, with the onus on members to use their judgement. All members had completed their core mandatory refresher training.

Annual Counter Fraud Report 2023-24

Darren Armstrong, Deputy Director Organisational Assurance & Resilience, presented the council's Annual Counter Fraud Report for 2023-24. The report highlighted the significant risk fraud poses to the council and detailed the council's proactive and reactive measures to combat it, including work on internal fraud, tenancy fraud, external fraud (such as Blue Badge misuse), and proactive initiatives like National Fraud Initiative (NFI) data matching. The committee noted a significant increase in external fraud cases, particularly Blue Badge fraud, and discussed the allocation of resources to tackle these issues. The notional value of recovered housing properties was updated to £42,000 per property. The committee requested further details on the NFI review of Council Tax Single Person Discount cases.

Internal Audit Annual Report 2023-24

Darren Armstrong also presented the Internal Audit Annual Report for 2023-24. The report confirmed the independence and objectivity of the Internal Audit function and provided a reasonable assurance opinion on the council's governance, risk management, and internal control framework. Areas for improvement identified included the rate of implementation of audit recommendations and addressing second line gaps in control. The committee noted the flexible, risk-based approach to the audit plan and discussed the challenges in implementing audit actions within agreed timescales. The revised Internal Audit Charter was also noted, reflecting changes in the Head of Internal Audit's role. The committee resolved to note the report, the annual opinion, and the revised Internal Audit Charter.

External Audit Enquiries of Management

Ben Ainsworth, Head of Finance, presented the management responses to the External Auditors' Enquiries of Management for 2023-24. The committee noted that no significant changes were required to the responses previously considered in March 2024, with the exception of finalising details regarding the use of solicitors. The committee resolved to note and approve the responses for submission to the external auditor.

Draft Statement of Accounts 2023-24 Update

Ben Ainsworth introduced the draft Statement of Accounts for 2023-24. The committee noted the earlier publication date compared to the previous year and commended the finance team for their efforts. Key points included the General Fund Outturn position reporting a breakeven with transfers from corporate contingency to cover overspends in Resident Services and demand-led pressures in Children and Young People and Care, Health and Wellbeing services. The committee discussed the use of reserves, capital project funding, measures to mitigate homelessness pressures, and the impact of one-year local government funding settlements. The committee resolved to note the draft accounts, with further clarification to be provided on specific points in the final report.

Annual Report of the Chairs of the Audit and Standards Committee and Audit and Standards Advisory Committee

David Ewart, Chair, presented the annual report summarising the work of both the Audit and Standards Committee and the Audit and Standards Advisory Committee during the 2023-24 Municipal Year. The committee welcomed the report and resolved to note its contents.

Annual Governance Statement 2023-24

Debra Norman, Corporate Director Law & Governance, presented the draft Annual Governance Statement (AGS) for 2023-24. The committee noted the seven core governance principles and that no significant governance issues had been identified for 2023-24. However, areas for improvement were identified, including enhancing the rate of audit action implementation and addressing second line control gaps. The committee resolved to recommend the AGS to the Audit and Standards Committee for approval, with an additional improvement action to be included regarding the implementation of audit actions within original timescales.

External Audit Progress Report and Sector Update

Sophia Brown from Grant Thornton provided an update on the progress of the 2023-24 audit of the council's financial statements. The audit plan was on track for completion by the September deadline. The committee noted the Value for Money planning work and sector updates, including information on audit backstops and guidance for audit committees. The committee resolved to note the update provided.

Audit & Standards Advisory Committee Forward Plan and Work Programme 2024-25

The committee resolved to note the Forward Plan and Work Programme for 2024-25, with updates to the schedule for the Emergency Preparedness item and the presentation of the final 2023-24 Statement of Accounts and External Audit Findings Report.